Evergy Missouri working to establish domestic solar supply contracts
Evergy Missouri is currently working with domestic solar suppliers in an effort to combat supply-related delays and capitalize on tax benefits according to the company's Senior Manager of Corporate Communications Gina Penzig.
Penzig confirmed in an interview with NPM the utility is "working with several suppliers to establish equipment supply and construction partnerships" following supply-related delays to its Hawthorn Solar Project in Kansas City. Although she says the primary motivation behind this move is avoiding further supply disruption, she says the IRA's domestic content tax adder is also factoring into this decision.
Back in March, the utility filed a document with the Missouri PSC indicating it may be exploring a list of "strategic suppliers" after supply chain issues caused significant delays in the project. The utility received approval for the 10 MW project way back in 2018 and had always earmarked it to supply a Kansas City-based solar subscription program, which it has now implemented. However, the project wasn't completed until January 2023, which the utility attributes to supply constraints.
Evergy had a first-hand look at the supply impact as it acted as the sole developer of the project without contracting with a third-party firm, though it did utilize Burns & McDonnell for construction. However, Penzig says the utility is not ruling out working with third party developers in the future as it builds out its solar pipeline in the state.
"As future projects are identified and developed, we will follow Evergy's competitive bid processes," Penzig says.
That comment also indicates the utility is exploring adding additional projects to the subscription program; customer demand filled the capacity of the program on day one and a waitlist system has been implemented. Beyond this new program, though, the utility is also working through a major 1.24 GW all-source RFP, which it issued in January.
This RFP notably reflects the utility's desire to remain hands-on with its project as it is requiring all bids be for BTAs rather than PPAs. Evergy Missouri's VP of Development Jason Humphrey told NPM the utility decided to own its projects going forward because it concluded ownership would bring greater value than PPA contracts.
Although the RFP is considering a variety of technologies, and the utility expects at least some of the capacity to come from natural gas, Evergy has indicated solar is expected to be the primary technology sourced, which could further explain its move to secure partnerships with domestic suppliers. The utility's IRP indicates it will add 2.1 GW of solar by 2030 alongside 1.25 GW of wind, a notable increase over previous projections shared in 2021.
Evergy's push for project ownership did receive some pushback last month when Missouri PSC staff recommended rejection of its bid to acquire the 200 MW Persimmon Creek Wind Project in Scout Clean Energy, the only project the utility selected through its 2021 RFP. PSC staff argued the project would be uneconomical and unfairly raise rates for ratepayers.
However, earlier this month, the PSC ultimately approved the acquisition with the condition that the utility shareholders and ratepayers "equally share any costs that exceed market revenues of system sales and the market value of the energy associated with owning the project."
*This story was originally published exclusively for NPM subscribers last month.
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